THE WHARF HOLDINGS LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(Incorporated in Hong Kong with limited liability)
Stock Code: 4
Group core profit increased by 5% to HK$11.0 billion.
Investment Properties ("IP") core profit increased by 9% to HK$8.3 billion.
That underpinned a net IP revaluation surplus of HK$6.2 billion in a very tough market.
IP's share of Group core profit increased to 76% (2014: 73%).
Total assets were stable at HK$444 billion.
IP portfolio increased by 3% to HK$310 billion.
Development Properties ("DP") excluding joint ventures and associates decreased to HK$38 billion.
Net debt decreased by HK$12 billion to HK$47 billion.
Net debt to equity ratio fell below 15% (2014: 19%).
Book net asset value increased to HK$308 billion (or HK$101.53 per share) net of decreases in exchange and investment reserves.
Core profit for the year increased by 5% to HK$10,969 million (2014: HK$10,474 million).
Including IP revaluation surplus and other accounting gains/losses, Group profit attributable to equity shareholders for the year amounted to HK$16,024 million (2014: HK$35,930 million) for a 55% decrease from 2014. Basic earnings per share were HK$5.29 (2014: HK$11.86).
A first interim dividend of HK$0.55 per share was paid on 21 September 2015. In lieu of a final dividend, a second interim dividend of HK$1.35 per share will be paid on 26 April 2016 to Shareholders on record as at 6 April 2016. Total distribution for the year 2015 will amount to HK$1.90 (2014: HK$1.81) per share.
Hong Kong IP revenue growth slowed down in a tough market but produced solid results. Revenue increased by 7% to HK$12,165 million and operating profit by 6% to HK$10,516 million. The Group's prime and quality malls continued to provide the best operating environment for retailers to trade, to have effective market presence, and to enhance one-stop lifestyle experience for shoppers. Office performance added impetus.
Overall revenue (excluding hotels) increased by 6% to HK$8,567 million and operating profit by 6% to HK$7,484 million.
Retail revenue increased by 5% to HK$5,949 million. Occupancy rate was maintained at virtually 100%.
Despite a weak market, Harbour City remains a global showcase in the region for the world's coveted brands. Among the most productive malls in the world with critical mass (two million square feet of adjoining mall space) and outstanding tenant mix, Harbour City continues to receive robust retailers' demand and support. It also marks the core and anchor of the six-million-square-feet "Greater Harbour City" cluster of the golden square mile in Tsim Sha Tsui covering high-traffic shopping, entertainment, dining and lifestyle. To stay well ahead of the trends, Harbour City strives to improve its retail offering with aspirational, young and lifestyle brands as well as to organize exclusive marketing events to exceed customer expectations. These alongside the ongoing asset enhancement initiatives continue to bring pleasant surprises and excitement to shoppers.
New openings or commitments including Miu Miu (Canton Road), Philipp Plein, J. Crew, Pandora, Sulwhasoo and Rado further optimized the tenant mix. The introduction of various Hong Kong / Kowloon debuts across distinct categories including Maison Margiela, Issey Miyake, Christian Louboutin Men and Tea WG Boutique continued to uplift retail and culinary experience.
A number of renowned fashion brands have expressed keen interest in expansion in Harbour City. Committed expansions included Jimmy Choo (flagship), Bottega Veneta, Prada, Giuseppe Zanotti and Roger Vivier. Various performing lifestyle brands including LOG-ON have also expanded to better catch their strong trends.
Ocean Terminal's enhancement works, poised for further value creation, are taking shape and progressing to plan. Premises improvement including the retail and culinary upgrade on the third floor is making good headway. New exciting offerings including Ballin, Leonard Paris, MM6, Pleats Please and Vivienne Westwood Café are attracting incremental patronage. The extension building, targeted for opening by mid-2017, will create new culinary options with a wondrous panoramic view over the harbour and city skyline.
Conversion works on the fourth floor at Gateway were completed. Adidas (flagship), China Tang
Kowloon debut and other pleasant retail concepts will be launched in 2016.
Harbour City's dominant position is further strengthened by its innovative marketing. "The Happiness Hunt - Where's Wally?", where the precious original artwork of Martin Handford was exhibited in Asia for the first time, successfully allured crowds and media noise. To support "Festive Korea", organized by The Consulate General of the Republic of Korea in Hong Kong, nearly 100 lanterns featuring 3-D die-cut Korean Words were set up at the Ocean Terminal Forecourt. During Christmas, Harbour City partnered with Hong Kong Disneyland to bring its 10th Anniversary Celebration theme "Happily Ever After" to life, with a Christmas Avenue featuring over 40 Disney friends, echoing the festive season.
Demand for office space at Harbour City remained solid, mainly attributable to the banking & financial sector and Mainland companies. Revenue increased by 9% to HK$2,317 million as a result of positive rental reversion. Rents for new commitments remained stable while occupancy rate was 98% at year-end. Lease renewal retention rate was 76%.
Revenue increased by 6% to HK$2,687 million, despite renovation temporarily disrupting certain retail area, and operating profit by 3% to HK$2,346 million.
The prominent 17-level mall design and expertly-managed trade mix of Times Square make it one of the most successful vertical malls globally. Situated atop Causeway Bay MTR Station, the iconic shopping landmark is, again, the core of a "Greater Times Square" cluster in the area. Proven management capabilities continued to drive rental growth. Retail revenue increased by 7% to HK$2,017 million with occupancy rate maintained at 99%.
New commitments or openings including AMOREPACIFIC, Burberry Beauty, Laura Mercier, M.A.C, Origins, Stuart Weitzman, Kurt Geiger and kikki.K widened the extensive product range. Overall tenant mix has been further refined with existing tenants committed to relocating with new images, including Marks & Spencer, Adidas, Camper and Max & Co. The recruitment of established F&B brands including Haagen-Dazs dessert café, Greenhouse by Gaia Group and Joe & The Juice further enriched dining offerings.
An array of featured kids' brands including Kingkow, Marks & Spencer Baby and Watsons Baby was introduced in "Kids Square", a new zone established on 13A floor, catering to a broader range of shoppers.
Conversion of the 9th floor and part of the 10th floor into a lifestyle hub was completed, with various new lifestyle brands, including Donguri Republic, LABO Hair & Nail by IL COLPO, Lenscrafters, OSIM, OTO, Sugarman, Tic Tac Time and Tissot introduced to enhance one-stop lifestyle experience. Part of the 10th floor has been renamed as "Square on 9th floor", and is now housing Metro Kids by Metro Books, Hanbing Korean Dessert Cafe and Life Kan, with enhanced circulation.
Constant marketing initiatives also spurred the success and brought endless surprises. Certain family friendly events were hosted, including Disney Pixar's Summer Blockbuster "Inside Out" Exhibition, the first-ever Star Wars Jedi Academy in Hong Kong, Gundam Docks at Hong Kong II, as well as Warner Brothers' Summer Blockbuster "PAN" Exhibition with Hugh Jackman's special appearance, effectively boosting publicity and footfall.
Positive rental reversion lifted revenue modestly to HK$670 million. Occupancy rate was 98% at year-end. Lease renewal retention was maintained at 65%.
Plaza Hollywood, a leading mall in Kowloon East, performed solidly. Revenue increased by 3% to HK$529 million and operating profit was maintained at HK$398 million. Occupancy rate was 96% at year-end. Meticulous tenant mix enhancement further unleashed growth opportunities.
The prime location in Kowloon East, a vibrant CBD2, alongside excellent transport connections affirms the enormous growth potential for Plaza Hollywood. The mall is easily accessible with its favourable location atop Diamond Hill MTR Station, the future interchange hub for the new Shatin-Central link with the existing MTR network, and its direct linkage with the Diamond Hill bus terminus. It is also in close proximity to the Tate's Cairn tunnel, a vehicular artery connecting Kowloon East with the New Territories and beyond to Shenzhen. Various adjacent cultural landmarks and tourist attractions further distinguish Plaza Hollywood from other malls in the region.
The deliberate design without towers provides Plaza Hollywood with maximum planning flexibility. With a highly efficient layout (65% of GFAs is lettable), the mall's competitive edge also lies in its valuable critical mass for shoppers and retailers (over 250 retail outlets, 20 restaurants, and a purposely-built stadium seating six-screen cinema multiplex with 1,614 seats).
China IP began to bear fruit, lifting revenue by 16% to HK$2,305 million, and operating profit by 25% to HK$1,243 million. In particular, Chengdu IFS showed continued strength, with retail performance exceeding the Group's expectation. Its distinguished positioning makes it stand out in a tough market.
Retail revenue increased by 25% to RMB605 million. Occupancy rate was virtually 100%.
Riding on its unrivalled location, critical mass, high calibre management and services, as well as the 15-metre-tall outdoor giant panda art installation, Chengdu IFS has quickly become a trend-setter and a one-stop lifestyle, shopping and entertainment landmark in Western China since its opening in 2014. The appealing mega mall offers exceptional brand diversity, housing nearly 300 global premium brands including over 100 Western China debuts. A 7,700-square-metre Sculpture Garden showcasing a range of sculptures created by artists from different parts of the world and a host of
The Wharf (Holdings) Ltd. issued this content on 09 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 09 March 2016 04:38:19 UTC
Original Document: http://www.wharfholdings.com/file/160309 e_WHL_final results.pdf
